Văn bản hợp nhất 31/VBHN-BTC năm 2022 hợp nhất Nghị định hướng dẫn Luật Thuế giá trị gia tăng do Bộ Tài chính ban hành

THE MINISTRY OF FINANCE OF VIETNAM ----------	THE SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No.: 31/VBHN-BTC	Hanoi, December 26, 2022

 

DECREE ^[1]

ELABORATION AND GUIDELINES FOR SOME ARTICLES OF THE LAW ON VALUE-ADDED TAX

The Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for some Articles of the Law on Value-added tax, coming into force from January 01, 2014, has been amended by:

1. The Government's Decree No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees on taxations which comes into force from November 15, 2014 but of which the provisions of Article 1 apply from the tax period of 2014.

2. The Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on elaboration of the Law on amendments to tax laws and amendments to some Articles of Decrees on taxations, coming into force from the entry into force of the Law on amendments to tax laws dated November 26, 2014.

3. The Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 elaborating and providing guidelines for some Articles of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration, coming into force from July 01, 2016.

4. The Government’s Decree No. 10/2017/ND-CP dated February 09, 2017 promulgating financial management regulations of Vietnam Electricity and amendments to Clause 4 Article 4 of the Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for some Articles of the Law on Value-added tax, coming into force from April 01, 2017.

5. The Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 providing amendments to the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 and the Government’s Decree No. 12/2015/ND-CP dated February 12, 2015, coming into force from February 01, 2018.

6. The Government's Decree No. 49/2022/ND-CP dated July 29, 2022 providing amendments to the Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for some Articles of the Law on Value-added tax, as amended by the Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP, coming into force from September 12, 2022.

Pursuant to the Law on Government Organization dated December 25, 2001;

Pursuant to the Law on Value-Added Tax dated June 03, 2008;

Pursuant to the Law on amendments to the Law on Value-Added Tax dated June 19, 2013;

At the request of the Minister of Finance of Vietnam;

The Government promulgates a Decree elaborating and providing guidelines for some Articles of the Law on Value-added tax, ^[2]

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree elaborates on and provides guidelines for some Articles of the Law on Value-added tax and the Law on amendments to the Law on Value-added tax regarding taxpayers, non-taxable items, taxable prices, tax rates, tax calculation methods, tax deduction, tax refund, and tax-collecting authorities.

Article 2. Taxpayers

1. VAT payers include organizations and individuals trading in or providing goods or services subject to VAT (hereinafter referred to as “business establishments”), or importing goods subject to VAT (hereinafter referred to as “importers”).

2. Vietnam-based producers and traders that purchase services (including services associated with goods) from foreign organizations that do not have permanent establishments in Vietnam or overseas individuals who are non-residents in Vietnam shall be VAT payers, unless they are not required to declare, calculate and pay VAT as prescribed in Point b Clause 3 of this Article.

Permanent establishments and overseas individuals that are non-residents referred to in this Clause must comply with the Law on corporate income tax and the Law on personal income tax.

3. Declaration, calculation and payment of VAT shall not be required in the following cases:

a) An organization or individual (hereinafter referred to as “entity”) receives compensation, prize money/bonuses, subsidies, payment for transfer of emission permits and other financial incomes.

b) A Vietnam-based producer/trader purchases the following services from foreign organizations that do not have permanent establishments in Vietnam or overseas individuals who are non-residents in Vietnam, including repair of means of transport, machinery or equipment (including supplies and spare parts); advertisement and marketing; investment and trade promotion; goods sale and service provision brokerage; training; sharing with foreign partners charges for international post or telecommunications services provided outside Vietnam.

c) A non-business entity that is not a VAT payer sells their property.

d) An entity transfers their investment projects on production and trading of goods and services subject to VAT to enterprises or cooperatives.

dd) Cultivation, animal husbandry and aquatic products which have not yet been processed into other products or have just undergone preliminary processing are sold to enterprises or cooperatives, except for the case prescribed in Clause 1 Article 5 of the Law on Value-added tax.

The Ministry of Finance of Vietnam shall provide specific guidelines for Clause 2 and Clause 3 of this Article.

Article 3. Non-taxable items

Items not subject to VAT are specified in Article 5 of the Law on Value-added tax, Clause 1 Article 1 of the Law on amendments to some Articles of the Law on Value-added tax, and Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration. ^[3]

1.^[4] Products that have undergone insufficient working or processing specified in Clause 1 Article 5 of the Law on Value-added tax, as amended in Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration, are products that have only been cleaned, dried, shelled, deseeded, cut, salted, cooled or otherwise preserved with common methods.

1b.^[5] Fertilizers, feeds for livestock, poultry, aquaculture, and other animals, whether or not processed, such as: mash, cake of various type, fish meal, bone meal, shrimp meal, and other feeds for livestock, poultry, aquaculture, and other animals, animal feed additives (such as premix, active ingredients, and carriers).

The Ministry of Finance of Vietnam shall take charge and cooperate with the Ministry of Agriculture and Rural Development of Vietnam in providing guidance on feeds for livestock, poultry, aquaculture, and other animals, and animal feed additives that are not subject to VAT as prescribed in this Clause.

1c.^[6] Offshore fishing ships; machinery and equipment serving agriculture, including: tractor; harrowing machine; milling machine; sowing machine; rootdozer; field leveling device; seeding machine; transplanter; sugarcane planting machine; rice-sowing machine; tiller, cultipacker, fertilizer spreader, pesticide sprayers; machine for harvesting rice, corn, sugarcane, coffee, cotton; machine for harvesting tubers, fruits, roots; tea-cutting machine, tea-picking machines; threshing machine; corn peeling machine; soybean crusher; peanut huller; coffee huller, equipment for preparing coffee, wet rice; dryer for agricultural products (rice, corn, coffee, pepper, cashew nut...), and aquaculture products; machine for collecting, loading sugarcane, straw on the field; machine for egg incubating and hatching; forage harvester; straw, grass baler; milking machine, and other specialized machines.

The Ministry of Finance of Vietnam shall take charge and cooperate with the Ministry of Agriculture and Rural Development of Vietnam in providing guidance on other specialized machines used in agriculture that are not subject to VAT as prescribed in this Clause.

2. Some services prescribed in Clause 8 Article 5 of the Law on Value-added tax and Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, including:

a) ^[7] Credit extension services include:

- Lending;

- Discounting and rediscounting of negotiable instruments and other financial instruments;

- Guarantee;

- Financial leasing;

- Credit card issuance’

- Domestic factoring; international factoring;

- Selling collateral, including the case in which the borrower sells the collateral themselves with authorization of the lender in order to repay secured loans. Where the owner of collateral defaults on the debt and has to transfer the collateral to the credit institution for settlement of the loan as prescribed by law, the VAT invoice is not required;

- Provision of credit information as prescribed by the Law on State Bank of Vietnam;

- Other types of credit extension prescribed by law.

b) Lending services rendered by taxpayers other than credit institutions;

c) Securities trading services, including: securities brokerage, proprietary trading, underwriting, securities investment consultancy, depositing, management of securities investment funds, management of securities investment companies, management of securities investment portfolios, market organization services provided by stock exchanges or securities trading centers, services related to securities registered or deposited at Vietnam Securities Depository, grant of loans to customers for conducting margin trading, advance payment for securities sold, and other securities trading activities as prescribed in the Law on securities.

d) Capital transfer, including partial or entire transfer of invested capital, including the cases of business acquisition, securities transfer, transfer of the rights to contribute capital, and other forms of capital transfer as prescribed by law.

dd) Selling debts.

e) Foreign currency trading.

g) Sale of collateral of debts of wholly state-owned organizations established by the Government in order to settle bad debts of Vietnamese credit institutions.

3.^[8] Medical services specified in Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration, including transport, testing, imaging, blood and blood products used for patients.

Care services for elderly people and disabled people specified in Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration, including medical and nutritional care, organization of cultural, sport and entertainment activities, physical therapy and rehabilitation for elderly people and disabled people.

4. Maintenance services of zoos, flower gardens, parks, street greeneries and public lighting systems; funeral services.

The Ministry of Finance of Vietnam shall provide specific guidelines on services not subject to VAT as prescribed in this Clause.

5. Where the renovation, repair or construction of works specified in Clause 12 Article 5 of the Law on Value-added tax is funded by sources of capital other than people's contributions (including amounts contributed or donated amounts) or humanitarian aid, the whole value of the works is not subject to tax, provided that total value of such sources of capital does not exceed 50% of the total capital used for the works.

Social policy beneficiaries include: People with meritorious services under the law on people with meritorious services; social protection beneficiaries whose allowances are derived from state budget; people classified as poor or living just above the poverty line; and other cases provided for by law.

6.^[9] Public transportation specified in Clause 16 Article 5 of the Law on Value-added tax, including intra-provincial, urban and extra-provincial suburban public transportation by bus and tram (including metro) according to traffic laws.

7. Aircrafts prescribed in Clause 17 Article 5 of the Law on Value-added tax and Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, including their engines.

The Ministry of Planning and Investment of Vietnam shall take charge and cooperate with relevant authorities in promulgating a list of domestically production machinery, equipment, spare parts and supplies as a basis for differentiating them from those which cannot be production domestically and need to be imported for scientific research and technological development activities; a list of domestically production machinery, equipment, spare parts, special-purpose means of transport and supplies as a basis for differentiating them from those which cannot be production domestically and need to be imported for exploring and developing oil and gas fields; a list of domestically production aircrafts, drilling platforms and ships as a basis for differentiating them from those which cannot be production domestically and need to be imported for the formation of enterprises' fixed assets or hired from foreign parties for production and business activities or for lease and sublease.

8. Weapons and military equipment used for national defense and security purposes prescribed in Clause 18 Article 5 of the Law on Value-added tax according to decisions issued by the Ministry of Defense of Vietnam or the Ministry of Public Security of Vietnam after reaching agreements with the Ministry of Finance of Vietnam.

9. Imported goods prescribed in Clause 19 Article 5 of the Law on Value-added tax which are provided for as follows:

a) Goods imported as humanitarian aid or aid grant are subject to approval of competent authorities.

b) Goods imported as gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations or people's armed forces shall comply with regulations of law on gifts.

c) Quotas on goods imported as gifts to individuals in Vietnam shall comply with regulations of law on gifts.

d) Belongings of foreign entities and personal effects must be within diplomatic immunity quotas and duty-free luggage quotas respectively.

dd) Goods and services sold to foreign entities or international organizations for use as humanitarian aid or aid grant to Vietnam.

10. In case of transfer of technologies or intellectual property rights specified in Clause 21 Article 5 of the Law on Value-added tax which is accompanied by machinery or equipment transfer, the value of transferred technologies or intellectual property rights shall not be subject to VAT. If this value cannot be separately determined, VAT shall be imposed on the total value of transferred technologies or intellectual property rights and accompanied machinery and equipment.

11.^[10] Exported products that are natural resources and/or minerals which have yet to be processed into other products.

Exported products which are made directly from natural resources and/or minerals whose total value inclusive of energy cost makes up at least 51% of their manufacturing costs, except:

- Exported products being finished products made from other intermediate products which are made of natural resources and/or minerals extracted and processed directly by the business establishment or by hired processing facilities (through a closed processing line or establishing workshop or factory for each processing stage); these exported products shall be subject to 0% VAT rate if the corresponding conditions set out in Point c Clause 2 Article 12 of the Law on Value-added tax are satisfied.

- Exported products being finished products made from other intermediate products which are made of natural resources and/or minerals purchased and processed directly by the business establishment or by hired processing facilities (through a closed processing line or establishing workshop or factory for each processing stage); these exported products shall be subject to 0% VAT rate if the corresponding conditions set out in Point c Clause 2 Article 12 of the Law on Value-added tax are satisfied.

- Exported products being finished products made from main materials other than natural resources and/or minerals (or those processed into other intermediate products) which are purchased and processed directly by the business establishment or by hired processing facilities; these exported products shall be subject to 0% VAT rate if the corresponding conditions set out in Point c Clause 2 Article 12 of the Law on Value-added tax are satisfied.

Natural resources and minerals mentioned in Clause 23 Article 5 of the Law on Value-added tax are domestically obtained natural resources and minerals, including metallic minerals, non-metallic minerals, crude oil, natural gas and coal gas.

The value of processed natural resources and/or minerals shall be determined as follows: the value of directly extracted natural resources and/or minerals includes direct and indirect costs of extraction but excludes the cost of transport of natural resources and/or minerals from the extraction site to the processing facility; the value of natural resources and/or minerals purchased for further processing is the purchase price, exclusive of the cost of transport of natural resources and/or minerals from the seller’s site to the processing facility.

Energy costs are costs of fuels, electricity and heat.

The ratio of the value of natural resources and/or minerals plus energy costs to the manufacturing costs shall be determined according to the previous year’s statement and applied during the exporting year. In the first year of export, this ratio shall be determined according to the investment plan and applied during the exporting year. Where the investment plan is not available, this ratio shall be determined according to the products actually exported.

The Ministry of Finance of Vietnam shall take charge and cooperate with relevant authorities in providing specific guidelines for determination of natural resources and/or minerals which have yet to be processed into other products as prescribed in this Clause.

12. Goods and services of the household or individual businesses that earn an annual turnover of VND one hundred million or lower.

The Ministry of Finance of Vietnam shall provide guidelines on determination of household or individual businesses that earn an annual turnover of VND one hundred million or lower and are not subject to VAT as prescribed in this Clause.

Chapter II

BASIS AND METHODS OF TAX CALCULATION

Article 4. Taxable prices

The taxable prices shall comply with the provisions of Article 7 of the Law on Value-added tax and Clause 2 Article 1 of the Law on amendments to the Law on Value-added tax.

1. The taxable price of a good or service sold is the selling price exclusive of VAT; the taxable price of a good or service subject to excise tax is the selling price inclusive of excise tax but exclusive of VAT; the taxable price of a good subject to environmental protection tax is the selling price inclusive of environmental protection tax but exclusive of VAT; the taxable price of a good subject to both excise tax and environmental protection tax is the selling price inclusive of environmental protection tax and excise tax but exclusive of VAT.

The taxable price of an imported good is the border-gate import price plus (+) import duty (if any), plus (+) excise tax (if any), and plus (+) environmental protection tax (if any). The border-gate import price shall be determined in accordance with regulations on prices for calculating import duties.

In the case of purchased services prescribed in Clause 2 Article 2 of this Decree, the taxable price is the payment price, exclusive of VAT, specified in the purchase of service contract.

2. The taxable price of a good or service used for exchange, internal consumption or donation is the taxable price of a good or service of the same type or equivalent specifications at the time of exchange, internal consumption or donation. Regarding donated or gifted invitation letters to watch art performance or fashion show or beauty and model contest, or sporting events licensed by competent authorities, the taxable price is zero.

The taxable price of a good or service used for promotion according to regulations of law on commerce is zero. VAT on goods/services used for promotion which do not comply with regulations of law on commerce shall be declared, calculated and paid in the same manner as goods/services used for exchange, internal consumption or donation.

Goods/services used for internal consumption prescribed in this Clause are those produced or supplied by the business establishment for its internal consumption, excluding those used in other production and business operations of the business establishment.

3.^[11] In the case of real estate transfer, the taxable price is the transfer price minus (-) the land price deducted upon VAT calculation.

a) The land price deducted upon VAT calculation is provided for as follows:

a.1) In the case of land allocated by the State to invest in the infrastructure and construct houses for selling, the land price deducted upon VAT calculation is the sum of the land levy payable to state budget according to regulations of law on collection of land levies and the cost of compensation and land clearance (if any).

a.2) In the case of auctions for land use rights, the land price deducted upon VAT calculation is the auction-winning price.

a.3) In the case of rent land used for construction of infrastructure and houses for selling, the land price deducted upon VAT calculation is the sum of the land rents payable to state budget according to regulations of law on collection of land rents and water surface rents and the cost of compensation and land clearance (if any).

The cost of compensation and land clearance stated in Point a.1 and Point a.3 of this Clause is determined according to the plan approved by a competent authority and deducted from the land levy or land rents payable according to regulations of law on collection of land rents and water surface rents.

a.4) In case of transferred land use rights, the land price deducted upon VAT calculation is the land price which is determined at the time of transfer and excludes the value of infrastructure facilities. The business establishment may declare and deduct input VAT on infrastructure facilities (if any). Where the land price at the time of transfer cannot be determined, the land price deducted upon VAT calculation shall be the land price announced by the relevant Provincial People's Committee at the time of conclusion of the transfer contract.

Where a business establishment receives transfer of real estate from another entity and has included the value of infrastructure facilities in the land price as prescribed in Point a Clause 3 Article 4 of the Decree No. 209/2013/ND-CP (as amended in Clause 3 Article 3 of the Decree No. 12/2015/ND-CP dated February 12, 2015), the land price deducted upon VAT calculation shall be the land price determined at the time of transfer, exclusive of the value of infrastructure facilities.

Where the value of infrastructure facilities at the time of transfer cannot be determined separately, the land price deducted upon VAT calculation shall be the land price announced by the relevant Provincial People's Committee at the time of conclusion of the transfer contract.

a.5) In case a business establishment receives capital contribution in the form of land use rights, the land price deducted upon VAT calculation shall be the price written on the capital contribution contract. Where the transfer price of land use right is lower than the price of the land contributed, the land price deducted upon VAT calculation shall be the transfer price.

a.6) In case a real estate company enters into a Build – Transfer (BT) contract and pays with value of land use rights, the land price deducted upon VAT calculation shall be the price determined at the time of conclusion of the BT contract as prescribed by law. If the price is not determined when the BT contract is signed, the land price decided by the relevant Provincial People’s Committee shall apply.

b) In the case of construction and trading of infrastructure facilities, or construction of houses for selling, transfer or lease, the taxable price shall be the payment received according to the project schedule or payment schedule written in the contract minus (-) the land price deducted in proportion to the ratio (%) of the received payment to total value of the contract.

4.^[12]Taxable prices for electricity production of the Vietnam Electricity (EVN) are provided for as follows:

a) Regarding electricity generated by financially dependent hydropower companies of EVN or Power Generation Corporations, the taxable price used for calculating the VAT amount payable in the province where the hydropower plant is located equals 35% of the average retail price of electricity, exclusive of VAT, according to regulations of the law on electricity and the law on pricing.

b) Regarding electricity generated by financially dependent thermal power companies of EVN or Power Generation Corporations, the taxable price used for calculating the VAT amount payable in the province where the thermal power plant is located is the selling price of electricity to customers written on invoices according to the power purchase agreement applied to each thermal power plant.

If the power purchase agreement applied to each thermal power plant is not available, the taxable price shall be the average retail price of electricity, exclusive of VAT, according to regulations of the law on electricity and the law on pricing.

c) Regarding electricity generated by financially dependent electronic generation companies (except hydropower and thermal power companies) of EVN or Power Generation Corporations, the taxable price used for calculating the VAT amount payable in the province where the electronic generation plant is located is the selling price of electricity, exclusive of VAT, applied to each electronic generation type by competent authorities.

If the selling price of electricity applied to each electronic generation type by competent authorities specified in this Point is not available, the taxable price shall be the average retail price of electricity, exclusive of VAT, according to regulations of the law on electricity and the law on pricing.

5. Regarding casino business, prize-winning electronic games or betting entertainment services, the taxable price is excise tax-inclusive earnings from these services, excluding prizes or payouts already paid to customers.

6. Taxable prices of goods and services specified in Clause 1 Article 7 of the Law on Value-added tax and Clause 2 Article 1 of Law on amendments to the Law on Value-added tax include surcharges and additional charges earned by business establishments.

The Ministry of Finance of Vietnam shall provide specific guidelines for taxable prices specified in this Article.

Article 5. Time of VAT determination

1. VAT on goods shall be determined when the ownership or the right to use goods is transferred to the buyer, regardless of whether or not the payment is made.

2. VAT on services shall be determined when the service provision is completed or when the invoice for service provision is issued, regardless of whether or not the payment is made.

3. The Ministry of Finance of Vietnam shall provide specific guidelines for time of VAT determination in specific cases.

Article 6. VAT rates

VAT rates shall comply with the provisions of Article 8 of the Law on Value-added tax and Clause 3 Article 1 of the Law on amendments to the Law on Value-added tax.

1. The 0% VAT applies to exported goods and services, international transportation and goods and services not subject to VAT specified in Article 5 of the Law on Value-added tax and Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax upon exportation, except goods and services specified at Point dd of this Clause.

The exported goods and services are those sold and supplied to overseas entities and consumed outside Vietnam or in free trade zones; goods and services supplied to foreign customers in accordance with regulations of law.

a) Exported goods include: Goods exported to foreign countries or sold into free trade zones; works built and installed abroad or in free trade zones; goods sold and delivered outside Vietnam; supplies, spare parts for repair, maintenance of vehicles, machinery, equipment for foreign parties and consumed outside Vietnam; in-country exports and other cases in which goods are regarded as exports in accordance with regulations of law.

b) Exported services include services provided directly to entities in foreign countries or in free trade zones and consumed outside Vietnam or in free trade zones.

Where a service is provided both in and outside Vietnam under a service contract signed by and between two taxpayers in Vietnam or having permanent establishments in Vietnam, the 0% VAT only applies to the value of service provided outside Vietnam, except the case of insurance service for imported goods where the 0% VAT applies to total value of the contract. If the value of service provided in Vietnam is not separately specified in the contract, the taxable price shall be determined according to the ratio (%) of costs incurred in Vietnam to total costs.

Overseas individuals include foreigners who do not reside in Vietnam and overseas Vietnamese who reside in foreign countries and also stay outside Vietnam during the service provision.

Organizations and individuals in a free trade zone are those having completed business registration procedures and other cases specified by the Prime Minister of Vietnam.

c) International transport prescribed in this Clause includes passenger transport and freight transport along international routes from Vietnam to other countries and vice versa, or any route the point of departure and point of destination of which are both in foreign countries. If the international transport contract includes a domestic segment, the domestic segment is also included in the international transport.

d) In order to be eligible for the 0% rate, exported goods and services in Points a and b of this Clause must satisfy all of the conditions specified in Point c Clause 2 Article 9 of this Decree, and include some cases of goods and services eligible for the 0% VAT under conditions prescribed by the Ministry of Finance of Vietnam.

dd) ^[13] The 0% VAT shall not apply to:

- Transfer of technology, transfer of intellectual property rights to abroad;

- Selling reinsurance to abroad;

- Extension of credit to abroad;

- Transfer of capital to abroad;

- Investment of securities to abroad;

- Derivative financial services;

- Post and telecommunications services;

- Exports specified in Clause 11 Article 3 of this Decree;

- Goods/services provided for an individual who does not do business in a free trade zone.

- Tobacco, alcohol and beer products imported and then exported.

e) The Ministry of Finance of Vietnam shall provide specific regulations on some cases of other goods and services supplied to overseas entities that are eligible for the 0% VAT and goods and services supplied to overseas entities but consumed in Vietnam that are not eligible for the 0% rate.

2. The 5% VAT applies to goods and services specified in Clause 2 Article 8 of the Law on Value-added tax and Clause 3 Article 1 of the Law on amendments to the Law on Value-added tax. The 5% VAT applies to:

a) Clean water used for production and daily activities specified in Point a Clause 2 Article 8 of the Law on Value-added tax, excluding bottled drinking water and other soft drinks which are subject to the 10% rate.

b) ^[14] The products mentioned in Point b Clause 2 Article 8 of the Law on Value-added, including:

- Ores for fertilizer production which are ores used as materials for fertilizer production;

- Pesticides, including plant protection drugs and other pesticides;

- Growth stimulants for animals and plants.

c) ^[15] (abrogated)

d) Product preliminary processing and preservation services specified in Point d Clause 2 Article 8 of the Law on Value-added, including: Drying, peeling, shelling, deseeding, cutting, grinding, cooling, salting and other common methods of preservation.

dd) Fresh and live foods specified in Point g Clause 2 Article 8 of the Law on Value-Added Tax, including foods which are not yet cooked or processed into other products.

Unprocessed forest products specified in Point g Clause 2 Article 8 of the Law on Value-Added Tax include exploited natural forest products of the following groups: rattan, bamboo, mushrooms, Jew's ear, roots, leaves, flowers, medicinal plants, resin and other forest products.

e) Pharmaceutical chemical products and herbal materials used as raw materials for the production of curative and preventive medicines specified in Point 1 Clause 2 Article 8 of the Law on Value-Added Tax.

g) Social houses specified in Point q Clause 2 Article 8 of the Law on Value-Added Tax and Clause 3 Article 1 of Law on amendments to the Law on Value-Added Tax which are houses invested and built by state or entities of all economic sectors and meet the criteria on houses, sale price, rent, lease purchase price, objects, conditions for purchase, rent, lease purchase of social houses as prescribed by the law on housing.

Article 7. Credit-invoice method

The credit-invoice method shall comply with the provisions of Article 10 of the Law on Value-added tax and Clause 4 Article 1 of the Law on amendments to the Law on Value-added tax.

1. The VAT payable calculated using credit-invoice method is the output VAT amount minus (-) the creditable input VAT amount.

2. The output VAT amount is the total amount of VAT on goods sold and services provided as written in the VAT invoice.

The VAT amount written in the VAT invoice equals the taxable price of goods and services multiplied (x) by the VAT rate of such goods and services.

In case the payment price written in the record is inclusive of VAT, the output VAT amount shall be the payment price minus (-) the taxable price determined as prescribed at Point k Clause 1 Article 7 of Law on Value-Added Tax.

3. The creditable input VAT amount is determined based on:

a) The VAT amounts written in the VAT invoices on goods or services purchased and the records of payment of VAT on imported goods or payment of VAT on purchased services as prescribed in Clause 2 Article 2 of this Decree.

In case the payment price of purchased goods or services written in the record is inclusive of VAT, the deductible input VAT amount shall be the payment price minus (-) the taxable price determined as prescribed at Point k Clause 1 Article 7 of Law on Value-Added Tax.

b) Conditions for deduction of input VAT shall comply with the provisions of Clause 2 Article 9 of this Decree.

4. The credit-invoice method applies to:

a) An operating business establishment that earns annual revenue of VND one billion or more from goods sale and service provision and has fulfilled policies on accounting, invoices and records as prescribed by the law on accounting, invoices and records, except for household and individual businesses that pay tax according to the direct calculation method as prescribed in Article 8 of this Decree.

The tax calculation method shall be applied for a stable duration of two consecutive years.

The Ministry of Finance of Vietnam shall provide guidelines for calculation of revenues as the basis for determining business establishments that are eligible to pay VAT using credit-invoice method and stable duration for application of tax calculation method as prescribed in this Point.

b) The following business establishments may register for voluntary application of credit-invoice method:

- Operating enterprises and cooperatives that earn annual revenue of less than VND one billion from goods sale and service provision and have fulfilled policies on accounting, invoices and records as prescribed by the law on accounting, invoices and records;

- New enterprises that are established from investment projects of operating business establishments that pay VAT using credit-invoice method.;

- New enterprises and cooperatives that make investment in and procurement of fixed assets, machinery, equipment; foreign entities conducting business in Vietnam under main contracts or sub-contracts according to guidelines of the Ministry of Finance of Vietnam;

- Other economic organizations that can account the input and output VAT amounts.

c) If a foreign entity supplying goods and services for exploring, developing and exploiting oil and gas pays VAT using credit-invoice method, Vietnamese party shall declare and pay VAT on their behalf.

If a business establishment purchases, sells and processes gold, silver or precious stones, VAT on these activities must be separately declared and paid using direct calculation method as prescribed in Clause 1 Article 8 of this Decree.

5. The Ministry of Finance of Vietnam shall provide specific guidelines for this Article.

Article 8. Direct method

The direct method shall be employed for calculating VAT in accordance with the provisions of Article 11 of the Law on Value-added tax and Clause 5 Article 1 of the Law on amendments to the Law on Value-added tax.

1. The VAT amount payable using the direct method equals the added value multiplied by (x) the 10% rate applied to the purchase, sale and processing of gold, silver or precious stones.

The added value of gold, silver or precious stones is the payment price of gold, silver or precious stones sold minus (-) the payment price of corresponding gold, silver or precious stones purchased.

The payment price of gold, silver or precious stones sold is the actual selling price written in the invoice issued when selling gold, silver or precious stones, including processing costs (if any), VAT and other surcharges or additional charges earned by the seller.

The payment price of gold, silver or precious stones purchased is the value, inclusive of VAT, of gold, silver or precious stones purchased, or imported, and used for trading or processing of corresponding gold, silver or precious stones to be sold.

If the added value of gold, silver or precious stones in a tax period is a negative number, it may be offset against the positive number of the added value of gold, silver or precious stones. If there is no positive number of the added value or the positive number of the added value is not sufficient for offsetting against the negative number of the added value, the latter shall be carried forward to the next period. Upon the end of a calendar year, the remaining negative number of the added value shall not be carried forward to the next year.

2. The VAT amount payable using the direct method is calculated by multiplying the rate (%) by revenue and applied as follows:

a) Subjects of application:

- Operating enterprises and cooperatives that earn annual revenue of less than VND one billion, except for those voluntarily paying VAT using credit-invoice method as prescribed in Clause 4 Article 7 of this Decree;

- New enterprises and cooperatives, except for those voluntarily paying VAT using credit-invoice method as prescribed in Clause 4 Article 7 of this Decree;

- Household and individual businesses;

- The foreign entities doing business in Vietnam without following the Law on Investment and other organizations that fail to implement or partially implement regulations on accounting, invoices and records, except for foreign entities that provide goods and services for exploring, developing and exploiting oil and gas as prescribed in Point c Clause 4 Article 7 of this Decree.

- Other business entities, except for those voluntarily paying VAT using credit-invoice method as prescribed in Point b Clause 4 Article 7 of this Decree.

If a business establishment purchases, sells and processes gold, silver or gems, VAT on these activities must be separately declared and paid using direct calculation method as prescribed in Clause 1 of this Article.

b) The rate (%) used for calculating VAT on revenue is provided for as follows:

- Distribution or supply of goods: 1%;

- Services, construction without supply of materials: 5%;

- Production, transport, services associated with goods, construction with supply of materials: 3%;

- Other business operations: 2%.

c) Revenue means total amounts actually earned from goods sale or service provision and written in the invoice of goods/services, inclusive of surcharges and/or additional charges paid to a business establishment.

3.^[16] Business operations and household businesses that fail to implement or insufficiently implement regulations on accounting, invoices and records as prescribed by law shall pay presumptive VAT as prescribed in Article 51 of the Law on Tax Administration.

Chapter III

TAX DEDUCTION AND REFUND

Article 9. Deduction of input VAT

Deduction of input VAT shall comply with the provisions of Article 12 of the Law on Value-added tax and Clause 6 Article 1 of the Law on amendments to the Law on Value-added tax.

1. A Business establishment that pays VAT using credit-invoice method may deduct input VAT as follows:

a) Input VAT on goods or services used for the production or trading of goods or services subject to VAT may be fully deducted, including input VAT that is not be compensated of the damaged goods subject to VAT and input VAT of goods and services used for forming fixed assets such as canteens, rest houses, dressing rooms, garage, restrooms, water basins serving employees in production and business places and housing, health stations for workers in industrial parks.

b) ^[17] With regard to input VAT on goods and services (including fixed assets) used for manufacturing/trading of both goods/services subject to VAT and those not subject to VAT, only input VAT on goods and services used for manufacturing/trading of goods/services subject to VAT may be deducted. The business establishment shall separate deductible input VAT from non-deductible input VAT. If they cannot be separated, input VAT shall be deducted according to the ratio of revenue from the sale of goods/services subject to VAT to the total revenue from the sale of goods/services.

The Ministry of Finance of Vietnam shall take charge and cooperate with relevant Ministries in determination of total revenue from sale of goods/services as the basis for determination of VAT deduction ratio prescribed in this Clause with regard to each field.

With regard to business establishments with closed manufacturing process and independent accounting system that use products not subject to VAT to production goods subject to VAT, input VAT in all stages shall be deducted in full.

With regard to business establishments with projects of investment that is divided into multiple stages, including new business establishments that have closed manufacturing process, independent accounting system and use products not subject to VAT to production goods subject to VAT, if goods/services not subject to VAT are provided during infrastructural development stage, input VAT incurred during the fixed asset investment stage shall be deducted in full. Input VAT on goods/services that do not constitute fixed assets shall be deducted according to the ratio of revenue subject to VAT to the total revenue from the sale of goods/services.

With regard to business establishments with projects of investment, including new business establishments that invest in manufacturing/trading of both goods/services not subject to VAT and those subject to VAT, input VAT on fixed assets formed during the infrastructural development stage shall be temporarily deducted according to the ratio of revenue from goods/services subject to VAT to total revenue from goods/services under the business plan. The provisionally deducted VAT shall be adjusted to the ratio of revenue from goods/services subject to VAT to total revenue from the sale of goods/services within the first three years from the first year in which revenue is earned.

The Ministry of Finance of Vietnam shall provide guidance on determination of the ratio of revenue subject to VAT to the total revenue from the sale of goods/services, temporary deduction and adjustment of input VAT prescribed in this Point.

c) ^[18] The input VAT on fixed assets, machinery and equipment, including input VAT on the lease of these assets, machinery and equipment, shall not be deducted but shall be included in the costs of fixes assets or deductible expenses in accordance with regulations of the Law on corporate income tax and its guiding documents in the following cases: Specialized fixed assets used for the production of weapons and military equipment for national defense and security purposes; fixed assets, machinery, equipment of credit institutions, reinsurers, life insurers, securities companies, health facilities, training institutions; civil aircrafts and yachts which are not used for commercial transport of cargo or passengers, tourism or hotel operation.

Regarding fixed assets which are cars with 9 seats or fewer (except cars used for cargo transport, passenger transport, tourism or hotel operation; cars used for display and test drive by car dealers) and worth more than VND 1,6 billion, the input VAT in proportion to the amount in excess of VND 1,6 billion shall not be deducted.

d) The input VAT on goods and services used for production and trading of goods and services not subject to VAT shall not be deducted, except for cases specified in Points dd and e of this Clause.

dd) The VAT on goods and services purchased by a business establishment for the production and trading of goods and services provided to foreign entities or international organizations for use as humanitarian aid or aid grant as prescribed in Clause 19 Article 5 of the Law on Value-Added Tax shall be deducted in full.

e) The input VAT on goods and services used for exploring and developing oil and gas fields shall be deducted in full.

g) The input VAT arising in a month shall be declared and deducted upon determination of VAT payable of that month. If a business establishment finds that the input VAT is incorrectly declared, an adjustment may be made before the tax authority announces the tax inspection decision.

h) The input VAT on goods and services used for production and trading of goods and services not subject to VAT specified in Points a, d and dd Clause 3 Article 2 of this Decree shall be deducted in full.

i) The non-deductible input VAT may be included in expenses for calculating corporate income tax or in the costs of fixed assets, except VAT on goods and/or services of each purchase that is worth VND 20 million or more and is not supported by non-cash payment documents.

i1) ^[19] Input VAT on goods, services, fixed assets serving manufacturing of fertilizers, machinery and equipment serving agriculture, offshore fishing, and feeds for livestock, poultry, aquaculture, and other animals sold domestically shall not be declared and deducted. Instead, it shall be included in deductible expenses when determining income subject to corporate income tax, except for VAT on goods, services, fixed assets purchased before January 01, 2015 that satisfy conditions for deduction, tax refund, and are eligible for tax refund as prescribed in Article 10 of this Decree.

k) When a business establishment that pays VAT using direct method changes to pay VAT using credit-invoice method, it may deduct VAT on goods and services purchased from the first period of VAT declaration and payment using the credit-invoice method.

When a business establishment that pays VAT using the credit-invoice method changes to pay VAT using direct method, the VAT amounts on goods/services purchased during the period of VAT payment using the credit-invoice method which have not yet been deducted shall be included in deductible expenses upon determination of incomes subject to corporate income tax, except for those to be refunded in accordance with the provisions of Article 10 of this Decree and legislative documents coming into force before the effective date of this Decree.

l) The Ministry of Finance of Vietnam shall provide specific guidelines on declaration and deduction of VAT on goods and services purchased by authorized buyers whose names appear on invoices.

2. Conditions for deduction of input VAT:

a) There are VAT invoices on goods or services purchased or the receipts of payment of VAT on imported goods or payment of VAT on purchased services as prescribed in Clause 2 Article 2 of this Decree.

b) ^[20] There are proofs of non-cash payment for goods and services purchased or imported, unless the total value of each purchase or import of goods/services is below VND 20 million.

With regard to goods/services paid by installments of which the value is VND 20 million or more, the input VAT shall be declared and deducted according to the sale contracts, VAT invoices, and proofs of non-cash payment. If the proof of non-cash payment is not available because payment does not become due according to the contract, the input VAT may be still declared and deducted.

Goods and services purchased by offsetting the value of goods and services purchased against the value of goods and services sold are considered non-cash payment. If the monetary payment made after offsetting is VND 20 million or more, VAT shall only be deducted if there are proofs of non-cash payment.

In case the value of goods and services are purchased from a supplier is below VND 20 million but many purchases are made in the day with the total value of VND 20 million or more, VAT shall only be deducted if there are proofs of non-cash payment.

c) In addition to the conditions set out in Point a and Point b of this Clause, exported goods and services eligible for 0% rate must also meet the following:

- There are sale contracts, contracts for processing of goods for exported or entrusted processing of goods for export, or contracts for supply of services for entities abroad or in free trade zones;

- There are proofs of non-cash payment for exported goods/services and other documents as prescribed by law; and customs declaration forms for exported goods.

Goods and services exported by offsetting the value of goods and services exported against the value of goods and services imported or paying debts on behalf of the State are also considered as non-cash payment.

Where a foreign buyer is insolvent because of bankruptcy, or exported goods fail to meet quality criteria and thus are subject to destruction at the checkpoint of importing country, or exported goods are lost or damaged during transport or shipment outside the territory of Vietnam due to objective reasons, written certifications given by a third party for use as substitutes for proofs of non-cash payment shall be accepted as proofs of non-cash payment.

The Ministry of Finance of Vietnam shall provide guidelines on conditions to be satisfied in case of sale or provision of specific goods or services subject to 0% rate and on documents used as substitutes for proofs of non-cash payment.

Article 10. VAT refund ^[21]

1. A business establishment that pays VAT using the credit-invoice method may offset input VAT that remains after deduction in a month/quarter against that in the next month/quarter.

2.^[22] Refund of VAT on an investment project:

a) If a business establishment that has completed procedures for business registration and payment of VAT using the credit-invoice method (including a business establishment is established under an investment project) has a new investment project (including that divided in multiple investment phases or work items) in accordance with regulations of the Law on investment in the same province or city where it is headquartered, or in another province or city, (except the case specified in Point c of this Clause and investment projects on construction of houses for sale or those that do not form any fixed assets), or a petroleum exploration and extraction project that is still in the investment stage, it shall be eligible for VAT refund, provided that the accrued input VAT on goods/services purchased during investment is VND 300 million or more.

The business establishment shall be declare VAT on its investment project separately and offset the input VAT on its investment project against the VAT payable on its business operations (if any). If the accrued input VAT on the investment project which remains after offsetting is VND 300 million or more, VAT shall be refunded.

Where an investment project has been inspected or audited by a competent authority, the tax authority may decide VAT refund according to the inspection or audit results.

b) VAT shall be refunded on the investment project of a business establishment that engages in conditional business lines according to the provisions of Point a of this Clause in the following cases:

b.1) The investment project is in progress and, pursuant to regulations of the Law on investment and specialized laws, has been granted a license, certificate or approval for conducting conditional business lines by a competent authority.

b.2) The investment project is in progress and, pursuant to regulations of the Law on investment and specialized laws, is not yet required to apply for a license, certificate or approval for conducting conditional business lines issued by a competent authority.

b.3) Pursuant to regulations of the Law on investment and specialized laws, the investment project is exempted from the requirement that it must have a license, certificate or approval for conducting conditional business lines issued by a competent authority.

c) VAT on an investment project shall not be refunded and shall be carried forward to the next period according to provisions of the Law on investment in the following cases:

c.1) An investment project of a business establishment engaging in conditional business lines fails to meet business conditions as prescribed in the Law on investment and Point a Clause 1 Article 13 of the Law on Value-added tax, as amended in the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on tax administration, which means that it is not yet granted any license, certificate or approval for conducting conditional business lines by a competent authority, or it fails to meet the conditions for conducting conditional business lines without the said document in accordance with the Law on investment (except the case specified in Point b of this Clause).

An investment project of a business establishment engaging in conditional business lines fails to maintain its satisfaction of business conditions during its operation as prescribed in Point a Clause 1 Article 13 of the Law on Value-added tax, as amended in the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on tax administration, which means that the issued license, certificate or approval for conducting conditional business lines has been revoked during the operation of the investment project or, during its operation, the business establishment fails to meet the conditions for conducting conditional business lines as prescribed in the Law on investment. In this case, VAT incurred from the time of revocation of the said document or from the time of detection of failure to maintain business conditions by competent authorities shall not be refunded.

c.2) An investment project on natural resource or mineral extraction is licensed from July 01, 2016 onwards or a production project has total value of natural resources/minerals, inclusive of energy costs, making up at least 51% of the product price, except investment projects on petroleum exploration and development prescribed in Point a of this Clause.

Clause 11 Article 3 of this Decree shall apply to determination of natural resources/minerals and their values, determination time and determination of energy costs.

3. 3. In a month or quarter, if the input VAT on exported goods/services (including goods imported and then exported to free trade zones or to other foreign countries) that remains after deduction is VND 300 million or more, it shall be refunded on a monthly or quarterly basis. If such VAT is smaller than VND 300 million, it shall be offset against that of the next month or quarter. If a business establishment has both goods/services exported and those sold domestically, and the input VAT on exported goods/services that remains after being offset against VAT amount payable is VND 300 million or more, VAT shall be refunded. The input VAT on purchases used for productions of goods/services for export shall be recorded separately. Otherwise, the input VAT shall be determined according to the ratio of revenue from exported goods/services to total revenue from goods/services of tax periods from the tax period succeeding the period in which VAT is refunded to the current tax period in which VAT refund is claimed.

VAT shall not be refunded in case goods are imported and then exported outside a customs area in accordance with regulations of law on customs, or goods are outside a customs area in accordance with regulations of law on customs.

Tax authority shall grant a refund before inspection if the taxpayer who is a manufacturer of exports has not incurred any penalty for smuggling, illegal transport of goods across the border, tax evasion, tax fraud, trade fraud for two consecutive years or the taxpayer does not pose a high risk according to the Law on Tax administration and its guiding documents.

4. A business establishment paying VAT using the credit-invoice method may claim refund of overpaid VAT or input VAT that remains after deduction upon its ownership transfer, conversion, merger, amalgamation, division, dissolution, bankruptcy or shutdown.

A business establishment that is dissolved or bankrupt or shut down before it is put into operation and thus has not incurred output VAT is not required to adjust the amount of VAT that was declared, deducted or refunded. In case of transfer of an investment project or sale of assets of an investment project or repurposing of an investment project, VAT shall be declared and calculated in accordance with guidelines of the Ministry of Finance of Vietnam.

5. Refund of VAT on programs and projects funded by ODA grant, aid grant or humanitarian aid:

a) Owner of the program/project or main contractor or an organization appointed by the foreign sponsor to manage the program/project funded by ODA grant shall have VAT on goods/services purchased in Vietnam to serve the program/project refunded;

b) A Vietnamese organization that uses aid grant or humanitarian aid provided by a foreign entity to purchase goods/services serving an aid program/project in Vietnam shall have VAT paid on such goods/services refunded.

6. An entity granted diplomatic immunity in accordance with regulations of law on diplomatic immunity shall have VAT on goods/services purchased in Vietnam for personal use refunded according to the VAT invoice or payment note on which the prices are inclusive of VAT.

7. A foreigner or Vietnamese national residing overseas who carries a passport or immigration document issued by a foreign competent authority shall have VAT on goods purchased in Vietnam refunded when they are carried in his/her luggage upon exit from Vietnam.

8. VAT shall be refunded when a business establishment has a decision on VAT refund issued by a competent authority and in cases in which VAT is refunded under international treaties to which Vietnam is a signatory.

Article 11. Tax-collecting authorities

1. Taxpayers shall declare and pay VAT to tax-collecting authorities in charge of areas where their business operations are performed.

2. If a taxpayer that declares and pays VAT using the credit-invoice method has a financially dependent production facility located in a province or city different from that where it is headquartered, VAT shall be paid to the tax-collecting authority in charge of province or city where its production facility is located and that in charge of province or city where it is headquartered.

The Ministry of Finance of Vietnam shall provide specific guidelines for this Article.

Chapter IV

IMPLEMENTATION ^[24]

Article 12. Effect and responsibility for implementation

1. This Decree comes into force from January 01, 2014 and supersedes the Government’s Decree No. 123/2008/ND-CP dated December 08, 2008 and the Government’s Decree No. 121/2011/ND-CP dated December 27, 2011.

Clause 1 Article 4 of the Government’s Decree No. 92/2013/ND-CP dated August 13, 2013 elaborating some Articles, taking effect from July 01, 2013, of the Law on amendments to the Law on corporate income tax and the Law on amendments to the Law on Value-added tax shall be abrogated from the date of entry into force of this Decree.

2. The Ministry of Finance of Vietnam shall provide guidance on the implementation of this Decree.

3. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and relevant organizations and individuals shall implement this Decree./.

 

CERTIFIED BY PP. MINISTER DEPUTY MINISTER Cao Anh Tuan

 

 

[1] This document is consolidated from the following 07 Decrees:

- The Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for some Articles of the Law on Value-added tax, coming into force from January 01, 2014 (hereinafter referred to as “Decree No. 209/2013/ND-CP”);

- The Government's Decree No. 91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees on taxations which comes into force from November 15, 2014 but of which the provisions of Article 1 apply from the tax period of 2014 (hereinafter referred to as “Decree No. 91/2014/ND-CP”).

- The Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on elaboration of the Law on amendments to tax laws and amendments to some Articles of Decrees on taxations, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014 (hereinafter referred to as “Decree No.12/2015/ND-CP”).

- The Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 elaborating and providing guidelines for some Articles of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration, coming into force from July 01, 2016 (hereinafter referred to as “Decree No. 100/2016/ND-CP”).

- The Government’s Decree No. 10/2017/ND-CP dated February 09, 2017 promulgating financial management regulations of Vietnam Electricity and amendments to Clause 4 Article 4 of the Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for some Articles of the Law on Value-added tax, coming into force from April 01, 2017 (hereinafter referred to as “Decree No. 10/2017/ND-CP”).

- The Government’s Decree No. 146/2017/ND-CP dated December 15, 2017 providing amendments to the Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 and the Government’s Decree No. 12/2015/ND-CP dated February 12, 2015, coming into force from February 01, 2018 (hereinafter referred to as “Decree No. 146/2017/ND-CP”).

- The Government's Decree No. 49/2022/ND-CP dated July 29, 2022 providing amendments to the Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for some Articles of the Law on Value-added tax, as amended by the Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP, coming into force from September 12, 2022 (hereinafter referred to as “Decree No. 49/2022/ND-CP”).

This document supersedes none of 07 Decrees mentioned above.

[2] - The Decree No. 91/2014/ND-CP is promulgated pursuant to:

“The Law on Organization of Government dated December 25, 2001;

The Law on Tax administration dated November 29, 2006, and the Law on amendments to the Law on Tax administration dated November 20, 2012;

The Law on Personal Income Tax dated November 21, 2007, and the Law on Amendments to the Law on Personal Income Tax dated November 22, 2012;

The Law on Value-Added Tax dated June 03, 2008 and the Law on Amendments to the Law on Value-Added Tax dated June 19, 2013;

The Law on Corporate Income Tax dated June 03, 2008, and the Law on Amendments to the Law on Corporate Income Tax dated June 19, 2013;

And at the request of the Minister of Finance of Vietnam”.

- The Decree No. 12/2015/ND-CP is promulgated pursuant to:

“The Law on Organization of Government dated December 25, 2001;

The Law on Tax Administration dated November 29, 2006, and the Law on amendments to the Law on Tax Administration dated November 20, 2012;

The Law on Personal Income Tax dated November 21, 2007, and the Law on Amendments to the Law on Personal Income Tax dated November 22, 2012;

The Law on Value-Added Tax dated June 03, 2008 and the Law on Amendments to the Law on Value-Added Tax dated June 19, 2013;

The Law on Corporate Income Tax dated June 03, 2008, and the Law on Amendments to the Law on Corporate Income Tax dated June 19, 2013;

The Law on Severance Taxes dated November 25, 2009;

The Law on amendments to the Laws on taxation dated November 26, 2014;

And at the request of the Minister of Finance of Vietnam.”

- The Decree No. 100/2016/ND-CP is promulgated pursuant to:

“The Law on Organization of Government dated June 19, 2015;

The Law on amendments to some Articles of the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration dated April 06, 2016;

And at the request of the Minister of Finance of Vietnam;”

- The Decree No. 10/2017/ND-CP is promulgated pursuant to:

“The Law on Organization of Government dated June 19, 2015;

The Law on Electricity dated December 03, 2004 and the Law on amendments to the Law on Electricity dated November 20, 2012;

The Law on Enterprises dated November 26, 2014;

The Law on Investment dated November 28, 2014;

The Law on public investment dated June 18, 2014;

The Law on management and use of state capital invested in manufacturing and business operations of enterprises dated November 26, 2014;

The Law on Value-Added Tax dated June 03, 2008 and the Law on Amendments to the Law on Value-Added Tax dated June 19, 2013;

The Law on amendments to some Articles of the Law on Value-added tax, the Law on excise taxes and the Law on Tax administration dated April 06, 2016;

The Law on Bidding dated November 26, 2013;

And at the request of the Minister of Finance of Vietnam.”

- The Decree No. 146/2017/ND-CP is promulgated pursuant to:

“The Law on Organization of Government dated June 19, 2015;

The Law on value-added tax dated June 03, 2008; Law on amendments to certain articles of the Law on value-added tax dated June 19, 2013; the Law on amendments to certain articles of the Law on value-added tax, the Law on excise tax and the Law on tax administration dated April 06, 2016;

The Law on Corporate Income Tax dated June 03, 2008, and the Law on Amendments to the Law on Corporate Income Tax dated June 19, 2013;

The Law on amendments to the Laws on taxation dated November 26, 2014;

At the request of the Minister of Finance of Vietnam;”

- The Decree No. 49/2022/ND-CP is promulgated pursuant to:

“The Law on Government Organization dated June 19, 2015; the Law on Amendments to the Law on Government Organization and the Law on Local Government Organization dated November 22, 2019;

The Law on Value-Added Tax dated June 03, 2008 and the Law on Amendments to the Law on Value-Added Tax dated June 19, 2013;

The Law on amendments to the Laws on taxation dated November 26, 2014;

The Law on amendments to some Articles of the Law on Value-added tax, the Law on special excise duty and the Law on Tax administration dated April 06, 2016;

And at the request of the Minister of Finance of Vietnam;”

[3] The phrase “Đối tượng không chịu thuế giá trị gia tăng thực hiện theo quy định tại Điều 5 Luật Thuế giá trị gia tăng và khoản 1 Điều 1 Luật sửa đổi, bổ sung một số Điều của Luật Thuế giá trị gia tăng.” (“Items not subject to VAT are specified in Article 5 of the Law on Value-added tax and Clause 1 Article 1 of the Law on amendments to some Articles of the Law on Value-added tax.”) is replaced by the phrase “Đối tượng không chịu thuế giá trị gia tăng thực hiện theo quy định tại Điều 5 Luật Thuế giá trị gia tăng, khoản 1 Điều 1 Luật sửa đổi, bổ sung một số Điều của Luật Thuế giá trị gia tăng và khoản 1 Điều 1 Luật sửa đổi, bổ sung một số Điều của Luật Thuế giá trị gia tăng, Luật thuế tiêu thụ đặc biệt và Luật quản lý thuế.” (“Items not subject to VAT are specified in Article 5 of the Law on Value-added tax, Clause 1 Article 1 of the Law on amendments to some Articles of the Law on Value-added tax, and Clause 1 Article 1 of the Law on amendments to the Law on Value-added tax, the Law on excise tax and the Law on Tax administration.”) according to Clause 1 Article 1 of the Decree No. 100/2016/ND-CP, coming into force from July 01, 2016.

[4] This Clause is amended according to Clause 1 Article 1 of the Decree No. 100/2016/ND-CP, coming into force from July 01, 2016.

[5] This Clause is added according to Clause 1 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

[6] This Clause is added according to Clause 1 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

[7] This Point is amended according to Clause 2 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014, as amended for the first time in Clause 1 Article 2 of the Decree No. 91/2014/ND-CP.

[8] This Clause is amended according to Clause 2 Article 1 of the Decree No. 100/2016/ND-CP, coming into force from July 01, 2016.

[9] This Clause is amended according to Clause 3 Article 1 of the Decree No. 100/2016/ND-CP, coming into force from July 01, 2016.

[10] This Clause is amended in Clause 1 Article 1 of the Decree No. 146/2017/ND-CP, coming into force from February 01, 2018, as amended for the first time in Clause 4 Article 1 of Decree No. 100/2016/ND-CP.

[11] This Clause is amended in Clause 1 Article 1 of the Decree No. 49/2022/ND-CP, coming into force from September 12, 2022, Point a Clause 3 Article 4 of the Decree No. 209/2013/ND-CP, as amended for the first time in Clause 3 Article 3 of the Decree No. 12/2015/ND-CP.

[12] This Clause is amended in Clause 1 Article 1 of the Decree No. 49/2022/ND-CP, coming into force from September 12, 2022, as amended for the first time in Article 2 of the Decree No. 10/2017/ND-CP.

[13] This Point is amended in Clause 5 Article 1 of the Decree No. 100/2016/ND-CP, coming into force from July 01, 2016, as amended for the first time in Clause 4 Article 3 of the Decree No. 12/2015/ND-CP.

[14] This Point is added according to Clause 5 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

[15] This Point is abrogated according to Clause 5 Article 6 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

[16] This Clause is amended according to Clause 2 Article 1 of the Decree No. 49/2022/ND-CP, coming into force from September 12, 2022.

[17] This Point is added according to Clause 6 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

[18] This Point is amended according to Clause 3 Article 2 of the Decree No. 91/2014/ND-CP, coming into force from November 15, 2014.

[19] This Point is added according to Clause 7 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

[20] This Point is amended according to Clause 8 Article 3 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014, as amended for the first time in Clause 2 Article 2 of the Decree No. 91/2014/ND-CP.

[21] This Article is amended in Clause 6 Article 1 of the Decree No. 100/2016/ND-CP, coming into force from July 01, 2016, in which Clause 2 Article 10 of the Decree No. 209/2013/ND-CP has been amended for the first time in Clause 9 Article 3 of the Decree No. 12/2015/ND-CP, and Clause 5 Article 10 of the Decree No. 209/2013/ND-CP has been amended for the first time in Clause 10 Article 3 of the Decree No. 12/2015/ND-CP.

[22] This Clause is amended in Clause 3 Article 1 of the Decree No. 49/2022/ND-CP, coming into force from July 01, 2016, as amended for the first time in Clause 9 Article 3 of the Decree No. 12/2015/ND-CP, and as amended for the second time in Clause 6 Article 1 of the Decree No. 100/2016/ND-CP.

[23] This Clause is amended according to Clause 2 Article 1 of the Decree No. 146/2017/ND-CP, coming into force from February 01, 2018.

[24] - Article 5 of the Decree No. 91/2014/ND-CP, coming into force from November 15, 2014, stipulates as follows:

“Article 5. Effect and responsibility for implementation

1. This Decree comes into force from November 15, 2014. The provisions of Article 1 of this Decree apply from the CIT period of 2014.

2. The Ministry of Finance of Vietnam shall provide guidance on the implementation of this Decree.

3. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and relevant organizations and individuals shall implement this Decree./.”

- Article 6 of the Decree No. 12/2015/ND-CP, coming into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014, stipulates as follows:

“Article 6. Effect and responsibility for implementation

1. This Decree comes into force from the date of entry into force of the Law on amendments to tax laws dated November 26, 2014.

2. Regulations on exchange rates when determining revenues, expenses, taxable prices, assessable incomes, taxable incomes in Article 7 and Article 8 of the Government's Decree No. 87/2010/ND-CP dated August 13, 2010, Clause 9 Article 4 of Government's Decree No. 26/2009/ND-CP dated March 16, 2009, and Clause 3 Article 1 of Government's Decree No. 113/2011/ND-CP dated December 08, 2011 are annulled.

3. Point n Clause 2 Article 3 and Point g Clause 2 Article 9 of the Government's Decree No. 218/2013/ND-CP dated December 26, 2013 are annulled.

4. Articles 7, 8, 9, 10, 19, 20, 21 and regulations on incomes from business in Articles 12, 13, and 14 of the Government's Decree No. 65/2013/ND-CP dated June 27, 2013 are annulled.

5. Point c Clause 2 Article 6 of the Government's Decree No. 209/2013/ND-CP dated December 18, 2013 is annulled.

6. The Ministry of Finance of Vietnam shall provide guidance on the implementation of this Decree.

7. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and relevant organizations and individuals shall implement this Decree./.”

- Article 5 of the Decree No.100/2016/ND-CP, coming into force from July 01, 2016, stipulates as follows:

“Article 5. Effect and responsibility for implementation

1. This Decree comes into force from July 01, 2016, except for Clause 2 of this Article.

2. Clause 2 Article 3 of this Decree comes into force from September 01, 2016.

3. The Ministry of Finance of Vietnam shall provide guidance on the implementation of this Decree.

4. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and relevant organizations and individuals shall implement this Decree./.”

- Article 3 and Article 4 of the Decree No. 10/2017/ND-CP, coming into force from April 01, 2017, stipulates as follows:

“Article 3. This Decree comes into force from April 01, 2017. Financial management regulations of Vietnam Electricity enclosed with the Government’s Decree No. 82/2014/ND-CP dated August 25, 2014 are abrogated.

Article 4. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees, Board of Member and General Director of Vietnam Electricity shall implement this Decree./.”

- Article 3 and Article 4 of the Decree No. 146/2017/ND-CP, coming into force from February 01, 2018, stipulates as follows:

“Article 3. Implementation

This Decree comes into force from February 01, 2018.

Article 4. Responsibility for implementation

1. The Ministry of Finance of Vietnam shall provide guidance on the implementation of this Decree.

2. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and relevant organizations and individuals shall implement this Decree./.”

- Article 2 of the Decree No. 49/2022/ND-CP, coming into force from September 12, 2022, stipulates as follows:

“Article 2. Effect and responsibility for implementation

1. This Decree comes into force from September 12, 2022.

2. Provisions on refund of VAT on investment projects of business establishments engaging in conditional business lines set out in Clause 3 Article 1 of this Decree apply from the date of entry into force of the Decree No. 100/2016/ND-CP dated July 01, 2016.

In case business establishments have VAT on their investment projects collected as prescribed in Point c Clause 2 Article 10 of the Decree No. 209/2013/ND-CP (as amended in Clause 6 Article 1 of the Decree No. 100/2016/ND-CP), tax authorities shall consider adjusting VAT amounts, late payment fines and fines for administrative violations in taxation sector (if any). Offsetting and refund of overpaid VAT shall comply with regulations of the Law on tax administration.

3. Article 2 of the Government’s Decree No. 10/2017/ND-CP dated February 09, 2017 is abrogated.

4. The Ministry of Finance of Vietnam shall provide guidance on the implementation of this Decree.

5. Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees and relevant organizations and individuals shall implement this Decree./.”